Precision Castparts Corp.
From Wikipedia, the free encyclopedia
| Precision Castparts Corp. | |
|---|---|
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| Type | Public (NYSE: PCP) |
| Founded | April 1, 1953, Portland, Oregon |
| Headquarters | Portland, Oregon, United States  |
| Key people | Mark Donegan Chairman & CEO |
| Industry | aerospace and defense |
| Products | cast parts |
| Revenue | $3,546,000,000 |
| Operating income | ▲$349,100,000 (FY 2006) |
| Net income | ▲ $ 350,600,000 (FY 2006) |
| Employees | 16,000 (2006) |
| Divisions | PCC Airfoils, PCC Structurals |
| Subsidiaries | Wyman-Gordon Forgings, Special Metals Corporation |
| Website | PreCast.com |
Precision Castparts Corp. (NYSE: PCP) is a Portland, Oregon, United States based Fortune 500 company. The industrial goods and metal fabrication company manufactures cast metal parts for use in the aerospace, industrial, defense, and automobile industries. In 2006 they ranked 579th on the Fortune 1000 list, and 12th in the Aerospace and Defense Industry.[1] On June 1, 2007, PCC replaced MedImmune on the S&P 500 stock index.[2]
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[edit] History
Precision Castparts (PCC) was founded by Joseph B. Cox on April 1, 1953.[3] Cox was owner of Oregon Saw Chain and in 1949 had started a casting operation with assistant general manager Ed Cooley also working on the project. In 1953 Cox separated the two companies and PCC was formed, moving into a new larger facility in 1955, and incorporating the following year with Ed Cooley as one of the owners.[3]
[edit] 1960s & 1970s
Beginning in the 1960s the company began to secure contracts to provide parts for jet engines. In 1967 they were awarded a contract by General Electric to provide parts for their TF39 engine and another contract with Pratt & Whitney.[3] The following year the company was taken public and began work with Boeing.[3] By the 1970s PCC was also casting parts for body part replacements such as hips and knees.
[edit] 1980s to current
Then in the early 1980s they expanded their facilities with several additions. In 1985 the company acquired a titanium foundry in Europe and built a new plant the next year in France.[3] Over the next few years PCC acquired other companies such as Airfoils, and AETC Limited of Britain.[3] In 1989 PCC was listed on the New York Stock Exchange, trading as PCC.[3]
Acquisitions continued in the 1990s with Advanced Forming Technology, ACC Electronics, Quamco, Astro Punch, and Olofsson Corporation.[3] In 1997 PCC bought J&L Fiber Services, Pittler Maschinenfabrik GmbH, and Schlosser Casting Company. Over the next ten years the company continued to grow through acquiring other companies around the world in places such as Romania, Scotland, Switzerland, and Australia as well as companies within the United States.[4][3] They have also built or joined with partners to build plants in many countries around the world, including India, the Czech Republic, Hungary, China, and Malaysia.[3]
Precision received tax breaks from local governments in the Portland metro area in 2006 in exchange for a plant expansion.[5] In 2007, the company purchased Cherry Aerospace to expand their fastener business.[6]
[edit] Recent financials
| Year | Revenue | Net Profit |
|---|---|---|
| 2004: | $1,913 | $117 |
| 2005 | $2,919 | ($1.7) |
| 2006 | $3,546 | $350 |
| 2007 | $5,361 | $633 |
*In millions of US dollars.[7][8]
Listed on the New York Stock Exchange as PCP, the company is part of the S&P 400 MidCap and S&P 1500 Super Comp indexes.[9] In 2007, Precision was added to the S&P 500 stock index.[2] As seen in the table above, PCP's revenue increased by 52 percent in 2007, to $5.4B from $3.5B in 2006. Total debt increased by 29 percent, from $677 million in 2006 to $873 million in 2007. The increases in revenue and debt were due in part to a pair of acquisitions in February 2007 - GSC Foundries, Inc. (GSC), formerly a competitor to PCP in producing aluminum and steel structural investment castings, and Cherry Aerospace LLC (Cherry), a manufacturer of aerospace blind rivets and blind bolts.[10]
[edit] Products
The company manufactures a variety of parts for the aerospace industry including many jet engine components.[9] PCC also makes medical prostheses and parts for other industrial applications such as in the oil industry, the gas industry, and for use in power generating turbines for producing electricity.[9] They are considered a leader in the manufacturing of both jet engine airfoils and gas turbines used for generating electricity.[11] The company generates $1.5 million in revenue for each Boeing 787 Dreamliner built.[12]Other products made from the various metals are fasteners, products for the paper industry, parts used in the defense industry, and parts for the automotive industry.[9] PCC’s main markets are the United States, Europe, and Asia.[9]
[edit] References
- ^ Precision Castparts. Fortune 500: 2006. CNNMoney.com. Retrieved on September 12, 2007.
- ^ a b Precision Castparts to join S&P 500. CNNMoney.com. Retrieved on May 31, 2007.
- ^ a b c d e f g h i j History. Precision Castparts. Retrieved on February 28, 2008.
- ^ Giegerich, Andy. FTC orders Precision to sell Albany metals plant. Portland Business Journal, November 19, 1999.
- ^ Zuckerman, Peter. Precision's growth will bring 400 new jobs. The Oregonian, September 25, 2006.
- ^ Hunsberger, Brent. Precision Castparts buys maker of fasteners. The Oregonian, January 9, 2007.
- ^ Annual Report: 2006. Precision Castparts. Retrieved on February 28, 2008.
- ^ 2007 SEC 10-K Form, page 26. Precision Castparts. Retrieved on May 28, 2008
- ^ a b c d e Precision Castparts Yahoo! Finance. Retrieved on February 28, 2008.
- ^ PCP 2007 10-K, p. 24 via Wikinvest
- ^ Strom, Shelly. Precision Castparts: Energy markets drive sales. Portland Business Journal, July 19, 2001.
- ^ Read, Richard. Boeing's newest bird takes a giant leap forward. The Oregonian, March 18, 2007.
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